SAMSUNG - ECS Holdings Limited
SAMSUNG - ECS Holdings Limited
SAMSUNG - ECS Holdings Limited
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<strong>ECS</strong> Offices:<br />
CHINA<br />
Beijing<br />
Chengdu<br />
Guangzhou<br />
Hong Kong<br />
MITA(P) 355/07/2004 ISSUE NINE 2007 www.ecs.com.sg<br />
<strong>SAMSUNG</strong><br />
Faster, Better, Stronger<br />
Market Value:<br />
HP’s channel<br />
strategy for 2007<br />
Shanghai<br />
Shengyang<br />
Shenzhen<br />
Wuhan<br />
Xi’an<br />
Special Edition:<br />
Indonesia<br />
INDONESIA<br />
Balikpapan<br />
Bandung<br />
Denpasar<br />
Jakarta<br />
Semarang<br />
Solo<br />
Surabaya<br />
Ujung Pandang<br />
Jogjakarta<br />
MALAYSIA<br />
Kuala Lumpur<br />
Penang<br />
SINGAPORE<br />
PHILIPPINES<br />
Manila<br />
Cebu<br />
THAILAND<br />
Bangkok*<br />
Chiangmai<br />
Hadyai<br />
Khon-Kan<br />
Nakornrachasima<br />
Pitsanulok<br />
Phuket<br />
Rayong<br />
Suranthanee<br />
*Branches:<br />
• Pantip<br />
• Charn Issara Tower II
ecs post issue nine<br />
Note from Jansen Ek,<br />
Group Chief Operating Officer,<br />
<strong>ECS</strong> Holding <strong>Limited</strong><br />
Faster, Better, Stronger<br />
Communicating is about to get faster and sexier in Singapore.<br />
With the advent of the IDA’s island-wide WiMAX initiative, you<br />
can be sure that mobile communication products will be hot.<br />
On this note, I am proud to announce that <strong>ECS</strong> Singapore is<br />
now the official distributor for Samsung’s SGH-i600 mobile<br />
broadband smartphone. This phone really sets the new<br />
standard with its small form factor and smart design, combined<br />
with HSDPA and Wi-Fi—it is the ultimate smartphone with<br />
immediate email and messaging services.<br />
Just a little larger than a business card, The SGH-i600 offers<br />
connectivity with both Wi-Fi and HSDPA features. A HSDPA or<br />
High-Speed Downlink Packet Access, commonly known as 3.5generation,<br />
transmits data up to six times faster than 3G UMTS technology.<br />
Running on the Windows Mobile 5.0 Operating System, the Samsung Ultra Messaging<br />
i600 is equipped with MS Direct Push Technology that instantly updates email,<br />
calendar, contacts and tasks on Office Outlook. You can also retrieve information<br />
on the move, as the smartphone supports RSS feeds as well as pod-casting, which<br />
allows access to a wealth of information on the latest news on various topics such as<br />
current affairs, travel and health.<br />
The Samsung Ultra Messaging i600 is also equipped with the Piscel Viewer, which<br />
supports MS Word, Excel and PowerPoint formats as well as PDF and various image<br />
formats. One-click access to email attachments enables busy executives on the go to<br />
easily view documents, presentations and spreadsheets.<br />
At play, the powerful multimedia features such as Bluetooth Stereo Music Profile and<br />
Windows Media Player 10 let you enjoy crisp and clear music quality and view videos<br />
on a 2.3” 65K colour QVGA TFT-LCD screen. An external memory slot that supports<br />
up to 2GB MicroSD further allows seamless content streaming of videos. You can also<br />
enjoy other multimedia features, including a 1.3 Megapixel camera with autofocus and<br />
a VGA camera for video telephony.<br />
We have faster products; now we have better support—read our exclusive interview<br />
with Ng Tian Chong, Vice President and General Manager of HP’s Solution Partners<br />
Organization (SPO), Asia Pacific and Japan—on how HP is ramping up their channel<br />
programmes to better support its partners.<br />
Finally in this issue, we get up close with Indonesia and learn from Ivan<br />
Tjahjadi, President of <strong>ECS</strong> Indonesia, on the plans to build a faster, better and<br />
stronger business.<br />
<strong>ECS</strong> Post is published quarterly by <strong>ECS</strong> <strong>Holdings</strong> <strong>Limited</strong><br />
Blk 19, Kallang Avenue, #06-151, Singapore 339410, Tel: 65 6299-9433<br />
All materials printed in <strong>ECS</strong> Post are protected under the Copyright Act. Comments<br />
published in this journal represent views from the editorial team and individual<br />
contributors but not necessarily the views of <strong>ECS</strong> <strong>Holdings</strong> Ltd.<br />
You can also refer to our newly revamped website at www.ecs.com.sg for a soft copy<br />
of <strong>ECS</strong> Post and to keep updated on company announcements.<br />
Editor/Publisher<br />
Sharon Boh-Friberg (sharon.bohfriberg@ecs.com.sg)<br />
To subscribe or advertise in <strong>ECS</strong> Post, please contact the publisher.<br />
Write in<br />
to win<br />
Answer the following questions<br />
and be one of the lucky five<br />
to win a Skype Phone Mouse<br />
1. <strong>ECS</strong> has reported a record-high PATMI<br />
or net profit attributable to equity holders<br />
of $20.1 million, an increase of ____%<br />
compared to the S$17.3 million achieved<br />
in FY 2005.<br />
2. <strong>ECS</strong> has forged many significant<br />
distribution agreements in 2006 to tap<br />
high growth markets and segments such<br />
as with ____ and _______to tap SMB<br />
storage and IP telephony respectively.<br />
3. <strong>ECS</strong> Indonesia currently has a network of<br />
_________ resellers.<br />
Name:<br />
IC no.:<br />
Company:<br />
Designation:<br />
Email:<br />
Contact No:<br />
Only correct and complete entries will be accepted.<br />
One entry per person only.<br />
Email your entry to ecspostquiz@ecs.com.sg<br />
Your entry must be received before 31 May 2007.<br />
Previous<br />
1. <strong>ECS</strong>’ Q3 performance has been described as sterling.<br />
In fact, the quarter result marks the _______________<br />
consecutive quarter that net profit growth has outpaced<br />
revenue growth.<br />
Ans: Seventh<br />
2. During the last quarter, our accessories retail business<br />
continued to grow with the opening of the first and<br />
second shops in Marina Square and Plaza Singapura.<br />
Our third shop at IMM will open in 4Q and will be named<br />
______________.<br />
Ans: Apple Centre<br />
3. <strong>ECS</strong>’ retail business has introduced a privilege card<br />
that offers card holders exclusive discount and offers.<br />
This card is called the _____________ Privilege Card.<br />
Ans: Pacific City<br />
Thank you for the overwhelming response.<br />
Congratulations to the following winners:<br />
1. Ng Eng Siong, Agri-Food & Veterinary Authority of Singapore,<br />
Head Factory Licensing Section<br />
2. Lim Chin Han, Singapore Cord Blood Bank, Quality Manager<br />
3. Ng Wee Hiang Jason, STATSChipPac Pte Ltd, Test Product<br />
4. Quek Nam Kee, NTUC Income, Insurance Adviser<br />
5. Wu Jiale, BGP Geoexplorer Pte Ltd, Accountant
By Tay Eng Hoe,<br />
Group CEO, <strong>ECS</strong> <strong>Holdings</strong> <strong>Limited</strong><br />
Buoyed by robust performance in higher-margin businesses,<br />
improved operational and working capital management<br />
efficiencies, we have reported a record-high PATMI or net<br />
profit attributable to equity holders of S$20.1 million, an<br />
increase of 15.8% compared to the S$17.3 million achieved<br />
in FY 2005.<br />
Internally as we continued to focus on operational and<br />
financial efficiencies, operating profit jumped 28.6% to<br />
S$38.4 million in FY 2006 from S$29.9 million a year ago<br />
and exceeded management’s expectations.<br />
Geographically, China (North Asia) continued to deliver strong<br />
growth in profitability and this is important to us. In China, we<br />
enjoy an enviable position as the number two ICT distributor,<br />
having recently revamped our product mix from high-volume,<br />
thin-margin distribution to higher-margin enterprise systems<br />
in line with the demand environment in that country.<br />
At the same time, Southeast Asia also reported sharp<br />
growth driven mainly by the pent-up ICT demand in emerging<br />
economies.<br />
As the outlook for the Asia Pacific ICT industry continues to<br />
remain bullish, I am confident of our position as a preferred<br />
strategic partner to any global premium ICT player intent on<br />
tapping this region’s growth and in particular of China. Hence<br />
in 2007, we intend to expand our local footprint therein.<br />
Based on the aforementioned full year results, I believe<br />
that we have put in place a firm foundation based on solid<br />
business fundamentals. And we will continue to build on it<br />
for sustained future growth.<br />
<strong>ECS</strong> from the top<br />
A Firm Foundation<br />
For Sustained Future Growth<br />
I am thrilled to say that we have delivered on our promises and we have delivered<br />
well. Our strong results in 2006 underscore the effectiveness of our margin<br />
enhancement strategy. So with revenue growth still as an important, secondary<br />
priority, throughout the past year, we have been concentrating on raising operating<br />
margins. Consequently our performance in 2006 reflects the dedicated commitment<br />
of our group’s management and staff to our multi-tiered programme that repositions<br />
country-specific business thrusts and maximises leverage on local market trends.<br />
Against this backdrop, we have a commendable set of financial results with all three<br />
business segments – distribution, enterprise systems and IT services demonstrating<br />
double-digit PBIT (net profit before interest & tax) growth.<br />
Record $20.1 million net<br />
profit in 2006 as margin<br />
enhancement strategy<br />
starts to pay off<br />
We are ready to jumpstart our expansion into high-growth<br />
market segments. Towards this end, we have been exploring<br />
M&A initiatives in the past year and we are actively engaged<br />
in discussions with potential partners in the region, especially<br />
in Vietnam and India. At the same time, we will continue to<br />
build on our strength as a leading regional ICT distributor and<br />
towards this, we have forged many significant distribution<br />
agreements in 2006 such as with EMC and Avaya to tap<br />
the high growth SMB storage and IP telephony market<br />
segments respectively.<br />
Our plan for sustained future growth also includes our recent<br />
pilot ventures into IT-related accessories and selective<br />
retailing in Singapore in the second half of 2006 when we set<br />
up three initial experimental shops in Marina Square, Plaza<br />
Singapore and IMM.<br />
In 2007, we intend to build on this initial momentum<br />
and will continue to explore business opportunities in IT<br />
accessories and IT retail businesses to complement our<br />
distribution partners.<br />
In sum, 2006 has indeed been a fruitful year for us and I am<br />
optimistic that 2007 will be even better when we enter another<br />
phase in our evolution as a leading ICT player in the region.<br />
Once again, I would like to thank our staff and management<br />
for their single-minded focus and hard work as well as our<br />
vendors, partners, customers and shareholders for their<br />
continued support that has determined <strong>ECS</strong>’ success.<br />
ecs post issue nine<br />
ecs post issue nine
market value<br />
Q: What were the most memorable milestones for SPO in 2006?<br />
A: The most significant milestone for SPO was the<br />
specialization of the sales force. As you know, HP has a<br />
very broad portfolio of products and our channel team is<br />
a horizontal organization representing the PCs, servers,<br />
storage products, printers, and handheld PCs, etc. This<br />
specialization drive was a great momentous task for us.<br />
Today, we have achieved close to 100 percent of our<br />
channel sales reps that manage end-user facing type of<br />
resellers. This means that we have reps that are IPG (Inkjet<br />
Products Group)-specialized; PSG (Personal Systems<br />
Group)-specialized; or even enterprise products-specialized.<br />
In support, we give them specialized training, to improve<br />
the knowledge and skill-sets in their category of products.<br />
HP is very serious about this, and we have invested a lot<br />
of time and resources to identify the right profile of our<br />
reps for specialization, before sending them for specialized<br />
training and certification. In addition, HP has built-up the<br />
appropriate eco-system to support the reps.<br />
Q: Are you seeing any impact of the new initiatives?<br />
A: We are currently into the first quarter of our fiscal year,<br />
so it is still early days, but we are already seeing signs of<br />
better traction across the internal mechanisms and with our<br />
partners. The relationship between the various HP business<br />
units and their channels has benefited from improved and<br />
tighter communication and interaction all around. The<br />
feedback from our regional partners is that our reps are<br />
more knowledgeable, able to take the conversation deeper<br />
than previous times. For example, when the rep is talking<br />
to the partners about enterprise products and the subject of<br />
blade servers comes up. In the past, the conversation stops<br />
there as the rep will say “I will find out from my experts<br />
and get back to you.” Now, the rep will be able to bring the<br />
conversation 2 or 3 levels deeper and even get the right<br />
pricing information for the partners.<br />
ecs post issue nine<br />
HP is the largest channel player<br />
globally with its channel business<br />
accounting for more than two thirds<br />
of its total business.<br />
<strong>ECS</strong> Post recently caught up with Ng Tian Chong, Vice President and<br />
General Manager of HP’s Solution Partners Organization (SPO), Asia<br />
Pacific and Japan to gain some insights into HP’s strategy for 2007.<br />
Q: What about your competition?<br />
A: A lot of our competitors can be considered specialized<br />
already. In fact, HP is now unique with the range of products<br />
and services portfolio. For example, IBM has sold off its PC<br />
business so they are about servers, storage and software.<br />
With Dell, it is the PC; with Canon, Epson, Lexmark, it is<br />
printers and with EMC, it is about storage. This is why it is<br />
important for us to compete well and offer better solutions<br />
moving ahead.<br />
Q: What will be the focus for SPO in 2007?<br />
A: For HP, we have identified the mid-market space as our<br />
focus. By this, I mean the 100-999 staff companies. This<br />
segment has huge potential for all of HP’s products but it<br />
is also a difficult segment as we are talking about microverticals<br />
and verticals where the customers are working in<br />
different groupings, depending on how you look at it. So in<br />
approaching this group, we have to organize our assets and<br />
knowledge such that we can cover this large space in the<br />
most efficient manner. So what we have done in 2006 is to<br />
prepare the foundation for this market segment.<br />
The first thing that we had to do is to understand the customer’s<br />
market segment, how they organize themselves into different<br />
verticals. In short, they have scale. We need to know their<br />
characteristics, how they group themselves and what are the<br />
IT requirements they need in the different groups.<br />
We have worked with our various business units to identify<br />
and understand the top verticals on a country level. As<br />
mentioned earlier, we have also re-organized our channel<br />
team and the key for me is to have a channel map of partners<br />
on a country level. With this, I know which partners are<br />
certified and the various vertical and horizontal solutions<br />
that they carry.<br />
continue on page 8
Lim Tow Cheng<br />
Senior Vice President,<br />
Business Development, <strong>ECS</strong> <strong>Holdings</strong> <strong>Limited</strong><br />
With more than 20 years in trade and IT senior management, Mr. Lim has a well-established<br />
track record of successful revenue growth and corporate expansion across this region.<br />
He was most recently with Western Digital as Director for South Asia. Previously, Mr.<br />
Lim was the CEO of Digiland International <strong>Limited</strong> where he helped to nurture the<br />
Singapore-based firm to a S$1 billion MNC with 12 subsidiaries in 10 countries across<br />
Asia Pacific. Prior to joining Digiland, Mr. Lim held a number of senior management<br />
positions in Singapore’s Trade Development Board (now known as IE Singapore).<br />
We interview Mr. Lim to share some insights on his<br />
work at <strong>ECS</strong>.<br />
Q: Could you briefly describe your role at <strong>ECS</strong>?<br />
A: My key responsibilities are to identify and develop new<br />
business opportunities, drive geographical expansion of the<br />
group and assist in managing the subsidiaries.<br />
Q: How have your experiences helped you in your job?<br />
A: When I was with STDB, I gave advice to local businesses<br />
that were looking to invest overseas. Hence, I have much<br />
exposure to the international business, particularly the<br />
different Asian cultures and the peculiarities of doing<br />
business in Asia. In addition, I have spent many years<br />
setting up many overseas operations across the Asia<br />
Pacific. In short, I am able to provide <strong>ECS</strong> with a broader<br />
perspective on issues; and at the same time, understand<br />
the intricacies of operating businesses in Asia Pacific.<br />
Q: Are the any particular countries that you are focusing on?<br />
A: As you know, <strong>ECS</strong> is always focused on growing the<br />
business in Asia Pacific and my job is to look for viable<br />
business opportunities for further expansion. In this respect,<br />
my initial focus is to build up the business in Indonesia and<br />
the Philippines.<br />
Q: How has <strong>ECS</strong> performed in these countries?<br />
A: In Indonesia, we have already streamlined the operations<br />
and also established the JV in the Philippines. To move<br />
ahead, we have begun to lay stable infrastructure in these<br />
countries and a new ERP system in place. The next step is<br />
to grow new businesses and acquire new brands.<br />
Q: What kind of challenges do you face in your job?<br />
A: Part of my responsibilities is to ensure that the operations<br />
in the various countries run efficiently. The challenge has<br />
always been to manage the different expectations of<br />
companies and people from different cultures and values<br />
and to work out a transition that leads to a standard of<br />
operations that <strong>ECS</strong> is known for in the market.<br />
in profile<br />
“<strong>ECS</strong> is successful because<br />
the key managers – the<br />
CEO level as well as the<br />
second rung managers are<br />
the best-of-breed in the<br />
industry, visionary and<br />
highly committed.”<br />
Q: <strong>ECS</strong> has been doing great work in the various countries. What<br />
do you see as the success factors?<br />
A: The distribution business is a detailed business. As such,<br />
you need quality people who understand the business,<br />
people who have attention to details as we are dealing<br />
with large volumes—we need to stay on top of things like<br />
inventory, receivables, working capital, etc.<br />
You can always build the infrastructure, and you can always<br />
find the money. However, finding the right people to run the<br />
business with similar vision is the most challenging. In this<br />
respect, <strong>ECS</strong> is successful because the key managers – the<br />
CEO level as well as the second rung managers are the bestof-breed<br />
in the industry, visionary and highly committed.<br />
Q: What do you look for in a potential business partner?<br />
A: As you know, <strong>ECS</strong> follows a joint-venture strategy in the<br />
overseas market, and it is extremely difficult to transplant<br />
everything from Singapore. As such, we look for partners<br />
with talented people; established infrastructure and proven<br />
track record. And we help to improve them to a level that<br />
is consistent with our Group. This has been a successful<br />
approach that translates to faster and better business<br />
traction for <strong>ECS</strong>.<br />
ecs post issue nine<br />
ecs post issue nine
INDONESIA<br />
ecs post issue nine<br />
inside <strong>ECS</strong><br />
The Chequered Flag<br />
Themed on the Formula 1 concept,<br />
the <strong>ECS</strong> Technology Partners Night<br />
was held on December 21, 2006 as an<br />
appreciation to Cisco partners. <strong>ECS</strong>,<br />
the Cisco Authorized Distributor was<br />
given the honour of hosting the event<br />
which saw more than 200 attendees<br />
from 70 companies.<br />
In addition, <strong>ECS</strong> Technology<br />
was awarded as the Top Partner<br />
in Indonesia, for the following<br />
categories :<br />
THAILAND<br />
<strong>ECS</strong> Team with F1 concept.<br />
New virtual signing<br />
<strong>ECS</strong> The Best Partner System Integrator<br />
Based on revenue 2006<br />
• PT. Hewlett Packard Berca Servisindo<br />
<strong>ECS</strong> The Best Partner Based on Revenue<br />
2006:<br />
1. PT. Mitra Integrasi Informatika<br />
2. PT. Esa Mandiri Teknologi<br />
3. PT. Intikom Berlian Mustika<br />
4. PT. Signet Pratama<br />
5. PT. Prima Interasi Network<br />
<strong>ECS</strong> The Best Partner 2006 based on retail<br />
and potential growth 2006:<br />
1. Multi Kharisma<br />
2. PT. Tri Indonusa Surya<br />
3. PT. Microreksa Infonet<br />
4. PT. Prodata Sistem Teknologi<br />
<strong>ECS</strong> Thailand has signed up VMware, the global leader in virtual<br />
infrastructure software for industry-standard systems. Already known for<br />
its virtual products on the workstation and server fronts, VMware made<br />
headlines back in 2003 for its foray into virtual infrastructure. The company<br />
has since extended the solution to the enterprise and its latest solution is<br />
the VMware Infrastructure 3, the industry’s first complete infrastructure<br />
virtualization suite to deliver comprehensive virtualization, management,<br />
resource optimization, application availability and operational automation<br />
capabilities in an integrated offering.<br />
PHILIPPINES<br />
Well Done!<br />
Kudos to Philippines team for having garnered accolades from HP for<br />
outstanding performance in 2006. <strong>ECS</strong> Philippines has won awards for<br />
the following:<br />
• HP ISS Wholesaler of the Year<br />
• HP ASP Service Center of the Year<br />
<strong>ECS</strong>M Annua<br />
<strong>ECS</strong> Malaysia held its Annual Dinner &<br />
Dance 2007 at Sunway Lagoon Resort<br />
Hotel in January. The theme for this<br />
event was BOOGIE WOOGIE – GROOVE<br />
to the 70’s and all had to dress to that<br />
theme (see pictures). More than 180<br />
attended the event, including honored<br />
guests from HP, Microsoft, Apple,<br />
Samsung, Lenovo, Canon, Epson,<br />
Linksys, Symantec Adobe, Huawei,<br />
Printronix, Cisco, SUN,IBM Software,<br />
Lexmark, Juniper, Panduit, RedHat,<br />
Motorola, BEA and Attachmate. It was<br />
definitely a fun and memorable night<br />
for all the <strong>ECS</strong> staff and guests.<br />
Winners of Best Dress / <strong>ECS</strong> Idol<br />
- Men and Ladies Top Winners<br />
(From left : Mr Jansen, Mr TF Chong (MD of<br />
Mr Foo (MD of <strong>ECS</strong> Malaysia), Mr CP Loo (Co<br />
Malaysia), Mr JH Soong (Executive Director o<br />
(Asia South Channel Director for SUN) & Mr<br />
Director of Cisco Malaysia)
l D&D<br />
HP Malaysia),<br />
untry Sales Director of Sun<br />
f <strong>ECS</strong> Malaysia), Mr Edwin Yeo<br />
Avinash Gowda (Channel Sales<br />
Jansek Ek, COO<br />
with Best Dressed Winners<br />
Best Dress contest<br />
- Ladies Session<br />
SINGAPORE<br />
New additions to portfolio<br />
In this quarter, <strong>ECS</strong> Singapore has<br />
added new products to its enterprise<br />
portfolio. The company has signed<br />
up Quantum; Plasmon; and D-Link.<br />
Quantum is known for its storage<br />
solutions ranging from software,<br />
storage media, removable drives,<br />
tape drives, autoloaders, diskbased<br />
backups, and tape libraries.<br />
In addition, the completion of its<br />
recent ADIC acquisition establishes<br />
Quantum as the leading global<br />
storage company specializing in<br />
backup, recovery and archive.<br />
Plasmon develops and manufactures<br />
UDO (Ultra Density Optical) drives,<br />
media and optical libraries for secure<br />
data archives and Raidtec Solutions<br />
CHINA<br />
Gearing up for 2007<br />
<strong>ECS</strong> China recently held its 2007<br />
kick-off meeting in Beijing. Chairman<br />
Liuwei and CEO Foong shared their<br />
vision for achieving “steadiness”,<br />
“reformation”, “innovation”<br />
and “excellence”. The team also<br />
formulated goals and strategies<br />
for 2007.<br />
inside <strong>ECS</strong><br />
RAID controllers and network<br />
storage systems for resilient, highperformance<br />
primary storage.<br />
Based on ultra density, blue laser<br />
technology, UDO meets the media<br />
longevity and data compliance<br />
requirements of demanding data<br />
archive environments for small and<br />
large corporations and government<br />
agencies.<br />
Having celebrated its 20-year<br />
anniversary last year, D-Link is known<br />
for its networking solutions. Its<br />
drive to provide high-performance,<br />
standard-based technology that<br />
delivers advanced features with<br />
affordable pricing, will provide <strong>ECS</strong><br />
with new ammunition for the SMB<br />
market front.<br />
The kick-off meeting was followed<br />
by the Spring Festival celebrations<br />
in February where all the staff<br />
toasted to a Happy and Prosperous<br />
New Year ahead.<br />
ecs post issue nine
market value<br />
continued from page 4<br />
This is very important as when HP begins the “attack”<br />
on this segment, our various business units are going to<br />
deploy customer-facing reps, launching demand-generation<br />
activities like road-shows and seminars, bring together<br />
ISVs who carry different solutions. HP SPO will ensure that<br />
these leads generated will be passed on to the right<br />
partner to follow-up. So it is all about getting the channel<br />
eco-system ready.<br />
I am very proud to say that HP is the largest IT vendor with<br />
a very strong set of managed, final-tier partners whom we<br />
are confident to be number 1 in their space, These are bestof-breed<br />
partners. To a certain extent, we also extend the<br />
specialization to the partners, which we call “elite” partners.<br />
For example, we have the elite blade partners (who are top<br />
resellers of our blade server products) and the elite storage<br />
partners, or elite IPG partners for printers. The idea is to<br />
have very strong closed-loop marketing and management<br />
sales cycles so that the leads generated are passed on to<br />
the right partners, especially the “Elite” partners to close<br />
the deals.<br />
Besides the best-in-class final tier resellers, HP also has the<br />
best distributors in the industry, like <strong>ECS</strong>. We look forward<br />
to further improving our supply chain efficiencies with our<br />
distributors and work on programs to help us reach deeper<br />
and wider into the AP markets.<br />
Moreover, we will continue our “attached up-sell and<br />
cross-sell” strategy from 2006. The reason for this is that<br />
it benefits HP as well as the partners. From the partner’s<br />
perspective, if we get the right type accessories, options<br />
and the right programs in place to stimulate the up-sell and<br />
cross-sell, they get the opportunity to increase their margins<br />
by selling the more profitable products. HP certainly has<br />
the right infrastructure to support this and for our PSG and<br />
IPG business, this strategy will continue to be important<br />
for 2007. For example, <strong>ECS</strong> has helped HP a lot here. We<br />
have come up with various programs to ensure that from a<br />
distributor perspective, we can help drive and influence the<br />
final-tier to sell more of our accessories and options.<br />
Q: Do you see any changes in the business climate for<br />
Asia Pacific, and if you could use some of the countries as<br />
examples?<br />
A: Generally, this has remained unchanged. The twin engines<br />
of growth—India and China—are still on everyone’s radar.<br />
They continue to have very strong double digit growth in<br />
the channel business. The approach is now to venture from<br />
the larger cities into what we call tier-5 and tier-6 cities.<br />
ecs post issue nine<br />
Within the Southeast Asia region, the mainstream countries<br />
will continue to offer fairly healthy single digit growth.<br />
However, the real opportunity I see is the Indo-China<br />
market: Vietnam, Sri Lanka, Pakistan, and Bangladesh for<br />
example.<br />
For the mainstream markets, government policies will<br />
certainly help, but this can only go so far in terms of the big<br />
picture. These are “boosters” to the market but in terms of<br />
organic growth, the areas to watch for are India and China.<br />
Q: For the more mature markets, what would you advise the<br />
resellers to do in order to improve customer satisfaction?<br />
A: I think the reseller has several things to balance. They<br />
have to understand their customer and segment trends in<br />
their countries and identify the growth triggers. They need<br />
to be linked to the right solutions and services and offer<br />
the right portfolio to latch on to the growth opportunities.<br />
For the larger countries, the reseller has to think about<br />
geographical expansion as well. Yet, the reseller has to keep<br />
an eye on the IT business, their cost structure, business<br />
models in order to remain competitive.<br />
Q: Are there any new initiatives to foster better communication<br />
with your partners?<br />
A: Our partners interface with HP via our Partner Portal.<br />
We understand the importance of this and have invested a<br />
lot to improve and enhance the Partner Portal experience.<br />
What we have done is to put a lot of relevant materials<br />
on the portal for all our partners, like HP rebate programs<br />
and a weekly update ensures that our partners can access<br />
their score card, like a speedometer to see how fast they<br />
are driving relative to the target. These updates include<br />
resources like technical materials, new product information,<br />
pricing information, etc.<br />
These tie into our specialization initiatives whereby our<br />
partners can now be more productive. More information<br />
is available to them on-line so that they can access them<br />
faster than before.<br />
In March, we are re-launching our loyalty program. Formerly<br />
known as E-Points, the new and improved version will be<br />
called HP AchievePlus Programme. Here, our partners will<br />
get more opportunities to accrue points for selling “sweetspot”<br />
products, “cross-sell/up-sell” attached products, etc.<br />
In addition, a partner who specializes in mid-markets who<br />
achieves training certification will accrue points as well. This<br />
is certainly a more exciting rewards program overall.
Interview<br />
with Ivan Tjahjadi,<br />
President, <strong>ECS</strong> Indonesia<br />
country focus: indonesia<br />
Q: What factors would you attribute to the success of <strong>ECS</strong><br />
in Indonesia?<br />
A: Our extensive network of 1,600 partners and resellers is<br />
one of the leading contributors to our success. In addition,<br />
the strong and long-term relationship we have with the<br />
leading IT vendors - providing us with a comprehensive<br />
range of products from consumer electronics to enterprise<br />
IT, and thus enabling us to penetrate the market deeper<br />
and wider than our competitors.<br />
Not to mention our dedicated team of highly experienced<br />
and competent staff. Most of whom have been with<br />
company for more than 10 years. Our finance team<br />
has also contributed significantly by providing valuable<br />
support to our resellers.<br />
Q: What is the goal of the company in Indonesia?<br />
A: Our current goal is to achieve sustainable profitability<br />
and growth. In the growth area, we are going to focus<br />
and accelerate our expansion plans by adding more<br />
branches and continue looking for more products and<br />
new market segments.<br />
Q: How different is <strong>ECS</strong> from other IT distribution firms in<br />
Indonesia?<br />
A: First of all, we have dedicated and committed people who<br />
are passionate about the business. Their professionalism<br />
really sets the industry benchmark.<br />
<strong>ECS</strong> is also different from the competition by the fact that<br />
we are the leading IT distribution firm in Indonesia and a<br />
leading regional player – making us the preferred partner<br />
as we are able to support our resellers better with a wider<br />
range of products and services.<br />
Q: What new technology will be important for Indonesia?<br />
A: The potential growth segments in Indonesia are 3G<br />
technology and broadband. Today many new products<br />
already support 3G and Wireless, and this will also create<br />
new opportunities for content providers and application<br />
developers.<br />
In terms of infrastructure, we are seeing a lot of roll-outs<br />
in broadband technologies like ADSL and leased-lines.<br />
However, the challenge for the Indonesian government<br />
is the cost of the infrastructure. Then again, these are<br />
early days for broadband, but like telecommunications,<br />
the potential is there when you consider the number of<br />
islands that we have.<br />
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ecs post issue nine
country focus: indonesia<br />
Insider Talk Johan Yanto, Sri Setyawati, Catharine Burchan & Mirna Biere<br />
Finance Director Johan<br />
Yanto has been with<br />
<strong>ECS</strong> for 7 months.<br />
I enjoy working at <strong>ECS</strong><br />
because the company<br />
offers several technical<br />
environments and domains<br />
of knowledge.<br />
In my job, I get questions of<br />
a very diverse nature. I’m<br />
learning new things every<br />
day. This is important to<br />
me as I think I would get<br />
bored if I am not constantly<br />
challenged.<br />
Another “plus” factor is<br />
that I have the opportunity<br />
to work in a great team.<br />
They are extremely<br />
knowledgeable, and I’ve<br />
learned a lot from them.<br />
<strong>ECS</strong> is a dynamic company<br />
that gives the employees a<br />
lot of opportunities to grow.<br />
From a business standpoint,<br />
I’d like to see less emphasis<br />
on volume (revenue) and<br />
focus on higher margins.<br />
10 ecs post issue nine<br />
With more 14 years<br />
experience behind her,<br />
Sri Setyawati is the<br />
Consumer Director,<br />
Consumer division/<br />
Business Group for<br />
<strong>ECS</strong> Indonesia<br />
<strong>ECS</strong> has a great working<br />
environment. I’m grateful<br />
to have a good team<br />
here and the full support<br />
from my colleagues and<br />
management.<br />
The management is<br />
always supportive and<br />
encouraging us to excel<br />
in whatever we do.<br />
Prior to joining the<br />
<strong>ECS</strong> family, I was with<br />
Harrisma—one of the<br />
biggest distributors in<br />
Indonesia. Since the jointventure,<br />
we are now known<br />
as <strong>ECS</strong> Indo and I’m proud<br />
to be part of <strong>ECS</strong> team. We<br />
have the opportunity to<br />
learn from other countries<br />
such Singapore and<br />
Thailand, especially in the<br />
area of business strategies<br />
and operational efficiency.<br />
For example, <strong>ECS</strong> has<br />
developed a new IT system<br />
to streamline our sales<br />
processes by optimizing<br />
technology. This has made<br />
us more efficient and faster<br />
in reporting both to resellers<br />
and vendors than our<br />
competitors.<br />
Catharine Burchan,<br />
Business Manager, has<br />
been with <strong>ECS</strong> Indo for<br />
the past 3 years.<br />
I enjoy working at <strong>ECS</strong><br />
as the environment has<br />
a “family culture” which<br />
makes me feel at home.<br />
As a result, I know my team<br />
very well and our teamwork<br />
is very strong. My proudest<br />
moment was when we<br />
finally over-achieved our<br />
Microsoft target. This was<br />
momentous as we had been<br />
on par with our nearest<br />
competitor for the past 7<br />
years, and we have finally<br />
beaten them!<br />
I am proud to be an <strong>ECS</strong><br />
employee, and looking<br />
forward to improve my<br />
skills and knowledge.<br />
In <strong>ECS</strong>, the emphasis is on<br />
teamwork, which makes<br />
it an enjoyable working<br />
environment. Moreover,<br />
we have easy access to<br />
the management team,<br />
hence we are able to solve<br />
problems and nothing<br />
becomes personal. The<br />
proudest moment for me<br />
was when one of<br />
Thoroughly enjoying her<br />
5 years’ stint with <strong>ECS</strong><br />
is Mirna Biere Marketing<br />
Manager.<br />
the vendors issued me<br />
a challenge to create an<br />
“appreciation night” event<br />
better than theirs. Given a<br />
similar budget, I was able<br />
to pull it off and the vendor<br />
conceded to me.<br />
The incident has made me<br />
more determined to excel<br />
in my job. My challenge is<br />
now to make <strong>ECS</strong> better<br />
known in the market, and<br />
focus on improving our<br />
customer satisfaction.
Fast Facts<br />
on <strong>ECS</strong> in Indonesia<br />
Head Office :<br />
Ruko Mangga Dua Square Blok E34-37<br />
Jl. Gunung Sahari Raya No. 1<br />
Jakarta Utara 14420, Indonesia<br />
Telephone : +62.21-62312893, 62312895, 62312897<br />
Yogyakarta Branch :<br />
Jl. Cempaka 34B, Deresan<br />
Yogyakarta 55281, Indonesia<br />
Telephone : +62.274-563639<br />
Surabaya Branch :<br />
Ruko Sentra Fortuna Kav. 23<br />
Jl. Jaksa Agung Suprapto no. 39-41<br />
Surabaya 60272, Indonesia<br />
Telephone : +62.31-5455701, 5456326, 5457268<br />
180 employees as at 20 January, 2007<br />
Senior management team for <strong>ECS</strong> in Indonesia:<br />
• Ivan Tjahjadi, President, <strong>ECS</strong> Indonesia<br />
• Nana Osay, Executive Director<br />
• Tantri Bisono, Executive Director<br />
• Johan Yanto, Finance Director<br />
• Sri Setyawati, Consumer Director<br />
• Setiawan Suryana, IT Director<br />
• Catharine Burchan, Business Manager<br />
• Erlanda, Finance Manager<br />
• Mirna Biere, Marketing Manager<br />
HISTORY AND MILESTONES:<br />
2004<br />
PT. Harrisma Agung Jaya (the “Joint Venture Partners”) formed a joint<br />
venture company in Singapore called “<strong>ECS</strong> Indo Pte.Ltd” (<strong>ECS</strong> Indo);<br />
a 60/40 joint venture between <strong>ECS</strong> Group and Harrisma respectively.<br />
June 2004<br />
<strong>ECS</strong> Indo has been appointed by Microsoft as its distributor in Indonesia<br />
October-December 2005<br />
<strong>ECS</strong> Indo appointed distributor for HP’s imaging and printing consumer<br />
products and services.<br />
January 2006<br />
Announced a new branch in Yogyakarta<br />
May 2006<br />
<strong>ECS</strong> Indo appointed by Acer as its distributor in Indonesia for its PC and<br />
server products.<br />
January 2007<br />
<strong>ECS</strong> Indo appointed by Autodesk as its distributor in Indonesia for<br />
autocad products.<br />
March 2007<br />
<strong>ECS</strong> Indo moves to new building ( Mangga Dua Square )<br />
AWARDS & ACCOLADES<br />
Cisco Best Distributor 2005<br />
HP Distributor of the Quarter – Best in Business Fundamentals<br />
Q1 FY2006<br />
HP Best Distributor for IPG All-in-One Printer 2006<br />
HP Best Distributor for Supplies 2006<br />
Cisco Best Distributor 2006<br />
Vendors :<br />
Acer, Apple, Autodesk, Borland, Cisco,<br />
Hewlett-Packard, Microsoft, Sun Microsystems.<br />
country focus: indonesia<br />
Borland Technology 2006<br />
(Cilantro Lounge)<br />
Games on Indonesia<br />
Independence Day 2006<br />
Business Plan<br />
Meeting 2006<br />
(Mercure Hotel Jakarta)<br />
Gathering 2004 (Carita)<br />
Business Plan Meeting 2005<br />
(Novotel Bogor)<br />
HP Appreciation Night<br />
2006 (SAND’s)<br />
<strong>ECS</strong>-SUN Business Plan Meeting 2006 (Bali)<br />
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